What is Transfer on Death Deed Drafting?
A transfer on death deed is a legal document that permits a real estate owner to choose a beneficiary to inherit their property when they pass away. It helps to avoid probate and ensures the real estate owner maintains control over the property while they are alive.
If you need to draft a transfer of death deed, you might wonder how to approach it.
Read the rest of this article for the core components to include in a transfer on death deed, how to draft it to protect your interests, and how an experienced lawyer can assist you with the drafting process.
What are Key Terms in a Transfer on Death Deed?
A transfer on death deed usually contains the following core components:
- Grantor or owner. This states the person who owns the real estate and signs the deed.
- Beneficiary. This is the person (but can be multiple people) who are named in the transfer on death deed to receive the real estate when the grantor passes away.
- Revocability. This states that the grantor can amend the transfer on death deed by recording a new deed without requiring beneficiary approval.
- Recording. The transfer on death deed must be signed, notarized, and filed with the appropriate recording office.
- Encumbrances. Specify if there are any existing debts, liens, or mortgages attached to the real estate, as the beneficiary inherits the property subject to these.
- Property description. This should be a legal description which you can find on the current property deed. Include the property address and other identifying details, such as the parcel number.
- Grantor’s retained rights. Make it clear that the grantor has full property ownership during their lifetime.
What are Tips for Drafting a Transfer on Death Deed?
Now that you’ve locked down some important terms in your document, make sure you follow essential drafting tips for your transfer on death deed to prevent ambiguity and disputes.
Clarify Ownership Interest
Your transfer on death deed must state if the property transfer applies to the entire property or is reserved to the grantor’s ownership share to prevent confusion.
State Transfer Instructions
Clarify that ownership will be transferred to the chosen beneficiary upon the grantor’s death so that you don’t infringe on the grantor’s ownership during their lifetime. You should mention that the transfer takes effect when the grantor dies, so this isn’t confused with the deed’s effective date.
Include Revocation Clauses
Specify that the grantor can change or revoke the transfer on death deed during their lifetime. You can also explain the change procedures for clarity.
Consider Multiple Beneficiaries
If your document includes more than one beneficiary, you have to explain how property ownership will be split between them. Consider what will happen should one beneficiary die before the grantor.
To prevent challenges in the future, it’s advisable to select backup beneficiaries should the primary beneficiary can’t inherit it for whatever reason.
Mention the Grantor’s Right to Sell
To prevent restrictions on the grantor, confirm that they have full ownership of the property during their lifetime and can sell, lease, or otherwise use the property without requiring consent from the beneficiary.
It’s also worth stating for clarity that the beneficiary doesn’t receive any property ownership rights when the grantor is still alive.
Explain Taxes
You’ll have to clarify who is responsible for property taxes and address any transfer taxes that apply. There could also be tax consequences that are associated with the transfer. An accountant or tax adviser can assist you with this process.
Should You Hire a Lawyer for Transfer on Death Deed Drafting?
If you’re unsure of what to include in your transfer on death deed or you're worried about it because it involves a complex arrangement, you should hire a lawyer to help you draft it.
Here is how a lawyer can help you when drafting your transfer on death deed:
- Determine eligibility. They’ll confirm where the property is located and if it qualifies for this specific transfer, such as by checking state laws and the property type.
- Review property ownership. They’ll scrutinize the property’s existing deed to check ownership and confirm that the grantor has the authority to choose a beneficiary.
- Identify beneficiaries. They’ll ensure all beneficiaries are identified correctly.
- Include revocation. They’ll make sure that the owner understands what’s involved and how they can revoke or change the agreement.
- Review existing liabilities. They’ll check for any liens, easements, and mortgages that could affect the property transfer.
- Ensure legal compliance. They’ll check that the deed satisfies all applicable state requirements, such as regarding signatures and notarization.
- Coordinate with the owner’s estate planning. They’ll make sure the transfer on death deed is aligned with their estate plan, such as their will, to prevent ambiguity.
- Record the deed. They can help you with submitting the deed to the appropriate recording office.
- Review the transfer on death deed. If you’ve drafted your deed, you can hire a lawyer to review it so that no important information is missing.
Find a Lawyer for Transfer on Death Deed Drafting on ContractsCounsel
If you need to hire a lawyer to draft your transfer on death deed, you don’t have to worry that finding one who is experienced and works professionally is going to be costly or time consuming. By using an online legal platform, you can gain access to a range of skilled lawyers who can help you.
ContractsCounsel is one of the biggest online legal marketplaces that connects clients to a curated network of lawyers who have been vetted on the platform.
Here is how to ask a lawyer to draft your transfer on death deed from the comfort of your home.
- Go to the ContractsCounsel marketplace.
- Select ‘One-time project’ and ‘Create or update contract.’ Alternatively, choose ‘Review contract’ for a lawyer to provide a thorough review of your legal document.
- Post your project, which is free to do on the platform. Include a few details of what you require so you can connect with the best lawyers for your requirements.
- Wait for bids. Instead of searching for lawyers, lawyers directly on the platform will send you bids to work on your project.
- Review the platform’s lawyer data. This information includes the lawyers’ location, credentials, field of expertise, years of experience, and client ratings for previous projects completed on the platform.
- Select a lawyer and hire them to draft your transfer on death deed for a flat fee.
